Written Commentary
GOLD / SILVER
From a short-term perspective gold appears to have paused just under psychological/even number pricing of $1800 early on but classic bullish longer-term fundamental demand signals are beginning to surface. According to the IMF in February Japan, Turkey, Czech Republic, and Uzbekistan added to their gold reserves, while India and the UAE added to their reserves in January.
PLATINUM / PALLADIUM
While the palladium market has been anticipating and factoring-in improved Chinese vehicle sales and increased global auto production since the beginning of March, the market yesterday seemed to reembrace that theme. While the platinum market managed a positive trade yesterday and forged the highest close in 9 trading days, the magnitude of the gain was unimpressive, and prices have fallen back today as if the bull camp lacks capacity.
COPPER
Despite significant declines in global equity markets yesterday and ongoing global infection fears, the copper market spent almost the entire Wednesday US trading session in positive territory in a sign that the bulls have regained the edge. However, we are surprised that copper prices have not broken out to the upside in the wake of news that Antofagasta saw its first quarter copper output decline by 5.7% in the first quarter due to Covid interruptions.
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